NC
"If someone can give me an economic reason why oil should be twice what it was a year ago or 10 times what it was a decade ago I would love to hear it. Has demand doubled in the last year? Has demand gone up 10 fold in the last decade. My favourite argument is the one that goes "they aren't making any more oil"."
It does not require demand to go up 10 fold for the price to so rise if the supply curve is relatively inelastic. So in the short term, "they aren't making any more oil" may be correct. For a better explanation than I can remember from my O-level economics see:
Supply and demand - Wikipedia, the free encyclopedia